Today, I heard the news released by the Federal Reserve, which reminded me of altcoins. In the currency circle, altcoins, as the "derivative brothers" of Bitcoin, have been watched by everyone in recent years. Although the altcoin market is ups and downs and not very stable now, in the long run, they may really rise again.
1. What are the current altcoins like?
The altcoin market is booming now! In 2013-2014, there were less than 500 altcoins, but now there are more than 36.4 million. With so many altcoins crowded together, the competition is fierce, and many of them have no practical use and cannot find a breakthrough for growth.
Many altcoins have no technical innovation, they just copy and modify other people's technology, and have no core competitiveness. In addition, the issuance methods are also varied. Some developers get a large number of coins through pre-mining at the beginning, which leads to unfair market and easy price manipulation.
In addition, many altcoin communities are very small, the developer teams are unstable, and the professional level is uneven. People do not have a high degree of recognition for these altcoins, there are few application scenarios, and there are not many users. The prices are like a roller coaster, up and down.
However, the altcoin market is not without good news. After the US election, the crypto market improved. In mid-November 2024, the total market value of cryptocurrencies other than Bitcoin and Ethereum broke the three-year downward trend and reached an annual high of US$788 billion. Later, the market rebounded, and the market value of the crypto industry suddenly rose to US$1.1 trillion, a new high since 2021. Although it has fallen back a bit in the next two weeks, it also shows that the altcoin market is still somewhat dynamic and resilient. In addition, on the Binance exchange, the trading volume of altcoins has reached 78%, which shows that everyone is very confident that altcoins will usher in a bull market in 2025, and investors think that altcoins will definitely have a good future.
2. Why will it rise in the future?
Is the policy direction going to change?
Former US President Trump said at the World Economic Forum that he wanted to turn the United States into a global cryptocurrency center. Coinbase CEO Brian Armstrong also believes that cryptocurrency will be accepted by more people in the next few years. The Federal Reserve has just announced that interest rates will remain unchanged. With these favorable policies, if major economies such as the United States are increasingly supportive of cryptocurrency policies, altcoins with good technology and practical application scenarios will definitely benefit from it.
ETFs come to the rescue?
The development of ETFs (Exchange Traded Funds) has brought new opportunities to the altcoin market. Bitwise is preparing to launch a Dogecoin ETF, and the documents have been submitted in Delaware. JPMorgan Chase predicts that if the Solana and XRP ETFs are approved in the future, there may be about $15 billion in funds pouring in. Once the ETF is launched, it will not only bring more funds to altcoins, but also make them more valued in the traditional financial market, and more and more people will use them.
The market is reshuffled, and only the last one standing will be the winner?
As the cryptocurrency market matures, those worthless "junk coins" will gradually be eliminated, and the real potential altcoins will have a chance to come to the fore. Most traders in the market are now more mature and make more rational decisions, which is very beneficial to the healthy development of the market. In the process of continuous market changes, altcoins may find opportunities in hot tracks, and their prices and values can rise.
Although there are many problems in the altcoin market now, they have their own development potential. In addition, the external environment is gradually improving. In the future, altcoins are likely to have new development opportunities, and their prices and values will rebound. However, investors should be reminded that the cryptocurrency market is particularly risky, so you must be cautious when investing!
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